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Please answer for the empty space and the required answers for the following dates thank you According to NZ IAS 10 Events after the Reporting
Please answer for the empty space and the required answers for the following dates thank you
According to NZ IAS 10 Events after the Reporting Period (EARP) the EARP for Alex Ltd would mean the period from the _________________to the ________________________.
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1) 1 April 2021
2) 7 April 2021
3) 9 April 2021
4) 3 May 2021
Alex Ltd finalised its financial statements for the year ended 31 March 2021 and authorised them for issue on 6 June 2021. The new managing director is unsure about the treatment of the following material events and has asked for your professional advice. (1) 1 April 2021 The directors confirmed that the acquisition date for a business combination was 7 April 2021. Alex Ltd obtained control of X Ltd by acquiring shares: the fair value of the consideration was $980 000. The primary reason for the takeover was to increase Alex's Ltd market power. (11) 7 April 2021 - A dividend declared on 6 March 2021 was paid. The total dividend payable at balance date was $213 000. (111) 9 April 2021 - At the 31 March 2021 balance date, the general ledger inventory account included items of inventory measured at a net realisable amount of $100 000; this resulted in an inventory write-down expense of $38 000. On 9 April 2021, these items of inventory were sold for $148 000 (iv) 3 May 2021 An investment of Alex Ltd, consisting of 106 000 shares, was measured at the balance date fair value of $5 per share. The shares are now listed on the stock exchange at $0.70 per share. (v) 12 May 2021 Bikers Ltd, a supplier of Alex Ltd initiated legal proceedings against Alex Ltd (for a breach of contract) in November 2020. A provision of $140 000 to cover court costs and damages was recognised at balance date after Alex Ltd sought legal advice. The court decision, delivered on 12 May 2021, decreed that Alex Ltd did not have to pay any damages, and Bikers Ltd was required to pay Alex Ltd's court costs of $28 000 directly to the court by 31 May 2021. (vi) 19 May 2021 - Mountain Ltd, a supplier of Alex Ltd, initiated legal proceedings against Alex Ltd (for a breach of contract) in September 2020. A provision of $250 000 to cover court costs and damages was recognised at balance date after Alex Ltd sought legal advice. The court decision, delivered on 19 May 2021. decreed that Alex Ltd had to pay damages and court costs of $212 000Step by Step Solution
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